Public Act 097-0411
 
HB3158 EnrolledLRB097 07063 PJG 47156 b

    AN ACT concerning finance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Procurement Code is amended by
changing Section 50-37 as follows:
 
    (30 ILCS 500/50-37)
    Sec. 50-37. Prohibition of political contributions.
    (a) As used in this Section:
        The terms "contract", "State contract", and "contract
    with a State agency" each mean any contract, as defined in
    this Code, between a business entity and a State agency let
    or awarded pursuant to this Code. The terms "contract",
    "State contract", and "contract with a State agency" do not
    include cost reimbursement contracts; purchase of care
    agreements as defined in Section 1-15.68 of this Code;
    contracts for projects eligible for full or partial
    federal-aid funding reimbursements authorized by the
    Federal Highway Administration; grants, including but are
    not limited to grants for job training or transportation;
    and grants, loans, or tax credit agreements for economic
    development purposes.
        "Contribution" means a contribution as defined in
    Section 9-1.4 of the Election Code.
        "Declared candidate" means a person who has filed a
    statement of candidacy and petition for nomination or
    election in the principal office of the State Board of
    Elections.
        "State agency" means and includes all boards,
    commissions, agencies, institutions, authorities, and
    bodies politic and corporate of the State, created by or in
    accordance with the Illinois Constitution or State
    statute, of the executive branch of State government and
    does include colleges, universities, public employee
    retirement systems, and institutions under the
    jurisdiction of the governing boards of the University of
    Illinois, Southern Illinois University, Illinois State
    University, Eastern Illinois University, Northern Illinois
    University, Western Illinois University, Chicago State
    University, Governors State University, Northeastern
    Illinois University, and the Illinois Board of Higher
    Education.
        "Officeholder" means the Governor, Lieutenant
    Governor, Attorney General, Secretary of State,
    Comptroller, or Treasurer. The Governor shall be
    considered the officeholder responsible for awarding all
    contracts by all officers and employees of, and vendors and
    others doing business with, executive branch State
    agencies under the jurisdiction of the Executive Ethics
    Commission and not within the jurisdiction of the Attorney
    General, the Secretary of State, the Comptroller, or the
    Treasurer.
        "Sponsoring entity" means a sponsoring entity as
    defined in Section 9-3 of the Election Code.
        "Affiliated person" means (i) any person with any
    ownership interest or distributive share of the bidding or
    contracting business entity in excess of 7.5%, (ii)
    executive employees of the bidding or contracting business
    entity, and (iii) the spouse of any such persons.
    "Affiliated person" does not include a person prohibited by
    federal law from making contributions or expenditures in
    connection with a federal, state, or local election.
        "Affiliated entity" means (i) any corporate parent and
    each operating subsidiary of the bidding or contracting
    business entity, (ii) each operating subsidiary of the
    corporate parent of the bidding or contracting business
    entity, (iii) any organization recognized by the United
    States Internal Revenue Service as a tax-exempt
    organization described in Section 501(c) of the Internal
    Revenue Code of 1986 (or any successor provision of federal
    tax law) established by the bidding or contracting business
    entity, any affiliated entity of that business entity, or
    any affiliated person of that business entity, or (iv) any
    political committee for which the bidding or contracting
    business entity, or any 501(c) organization described in
    item (iii) related to that business entity, is the
    sponsoring entity. "Affiliated entity" does not include an
    entity prohibited by federal law from making contributions
    or expenditures in connection with a federal, state, or
    local election.
        "Business entity" means any entity doing business for
    profit, whether organized as a corporation, partnership,
    sole proprietorship, limited liability company or
    partnership, or otherwise.
        "Executive employee" means (i) the President,
    Chairman, or Chief Executive Officer of a business entity
    and any other individual that fulfills equivalent duties as
    the President, Chairman of the Board, or Chief Executive
    Officer of a business entity; and (ii) any employee of a
    business entity whose compensation is determined directly,
    in whole or in part, by the award or payment of contracts
    by a State agency to the entity employing the employee. A
    regular salary that is paid irrespective of the award or
    payment of a contract with a State agency shall not
    constitute "compensation" under item (ii) of this
    definition. "Executive employee" does not include any
    person prohibited by federal law from making contributions
    or expenditures in connection with a federal, state, or
    local election.
    (b) Any business entity whose contracts with State
agencies, in the aggregate, annually total more than $50,000,
and any affiliated entities or affiliated persons of such
business entity, are prohibited from making any contributions
to any political committees established to promote the
candidacy of (i) the officeholder responsible for awarding the
contracts or (ii) any other declared candidate for that office.
This prohibition shall be effective for the duration of the
term of office of the incumbent officeholder awarding the
contracts or for a period of 2 years following the expiration
or termination of the contracts, whichever is longer.
    (c) Any business entity whose aggregate pending bids and
proposals on State contracts total more than $50,000, or whose
aggregate pending bids and proposals on State contracts
combined with the business entity's aggregate annual total
value of State contracts exceed $50,000, and any affiliated
entities or affiliated persons of such business entity, are
prohibited from making any contributions to any political
committee established to promote the candidacy of the
officeholder responsible for awarding the contract on which the
business entity has submitted a bid or proposal during the
period beginning on the date the invitation for bids or request
for proposals is issued and ending on the day after the date
the contract is awarded.
    (c-5) For the purposes of the prohibitions under
subsections (b) and (c) of this Section, (i) any contribution
made to a political committee established to promote the
candidacy of the Governor or a declared candidate for the
office of Governor shall also be considered as having been made
to a political committee established to promote the candidacy
of the Lieutenant Governor, in the case of the Governor, or the
declared candidate for Lieutenant Governor having filed a joint
petition, or write-in declaration of intent, with the declared
candidate for Governor, as applicable, and (ii) any
contribution made to a political committee established to
promote the candidacy of the Lieutenant Governor or a declared
candidate for the office of Lieutenant Governor shall also be
considered as having been made to a political committee
established to promote the candidacy of the Governor, in the
case of the Lieutenant Governor, or the declared candidate for
Governor having filed a joint petition, or write-in declaration
of intent, with the declared candidate for Lieutenant Governor,
as applicable.
    (d) All contracts between State agencies and a business
entity that violate subsection (b) or (c) shall be voidable
under Section 50-60. If a business entity violates subsection
(b) 3 or more times within a 36-month period, then all
contracts between State agencies and that business entity shall
be void, and that business entity shall not bid or respond to
any invitation to bid or request for proposals from any State
agency or otherwise enter into any contract with any State
agency for 3 years from the date of the last violation. A
notice of each violation and the penalty imposed shall be
published in both the Procurement Bulletin and the Illinois
Register.
    (e) Any political committee that has received a
contribution in violation of subsection (b) or (c) shall pay an
amount equal to the value of the contribution to the State no
more than 30 days after notice of the violation concerning the
contribution appears in the Illinois Register. Payments
received by the State pursuant to this subsection shall be
deposited into the general revenue fund.
(Source: P.A. 95-971, eff. 1-1-09; 95-1038, eff. 3-11-09;
96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the
effective date of changes made by P.A. 96-795); 96-848, eff.
1-1-10.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.